Add a Recurring Fee to a Guarantee

There are two main categories of fees in Fairways Guarantees:

  • One-time fees: fixed fees calculated on a rate basis.
  • Recurring fees: calculated periodically on a rate basis as agreed with the guarantor.

 

Prerequisite

 

Navigate to the Guarantees Section
  1. Log in to your Fairways Guarantees account, e.g. https://koesio.financeactive.com/login.
  2. Select a customer account.
  3. Navigate to Guarantees.

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Add a Recurring Fee to a Guarantee
  1. Click a guarantee to open its profile.

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  1. Navigate to the Financial Fees section.
  2. Click Add > Add Recurring Fees.

Guarantee_FinancialFees_EN.png

  1. Complete the form with all relevant details.

Note: Fields marked with an asterisk * are mandatory.

Field

Description

From

Payer.

To

Receiver.

Start Date

Start date of the fee phase.

Note: By default, the same date as the effective date of the guarantee.

End Date

End date of the fee payment.

Note: By default, the same date as the expiry date of the guarantee.

Invoicing Type

Fairways Guarantees automatically calculates fees according to 3 invoicing types:

  • Invoicing: Fees paid by the principal(s) to the guarantor(s).
  • Markup: Fees charged by the principal to the applicant, according to the internal rules of the group in terms of transfer pricing, for acting as an intermediary.
  • Refund: Fees paid by the principal but due to being paid by the applicant.

End Date of First Period

End date of the first period, if it is a stub period.

Adjustment

Adjustment mode for the payment date.

Frequency

Frequency of the payments.

Calculation Mode

Basis amount used to calculate the fees.

Last Payment

Calculation mode of the last payment.

Rate

Rate applied.

Day Count Convention

Used to compute the day fraction of an interest accrual period.

Decimals

Count of decimals in the amount. 

Rounding Mode

Rounding rule. 

Currency

Currency in which fees are charged. It can be different from the currency of the guarantee.

Minimum Amount

Minimum amount of the fees that can be charged by the (local) guarantor.

Payment Method

  • Start of Period: In advance
  • End of Period: In arrears
  1. Click Save.

Fee_Recurring_Add_EN.png

The new recurring fees display.

Fee_Recurring_Added_EN.png

 

Adjustment

Adjustment modes define how the system rolls dates in case of holidays in the calendar.

Field

Description

None

Not rolled.

End of Month

Rolled to the last day of the month.

 

Day Count Convention

Field

Description

30E/360

30 days a month, assuming the year has 360 days.

30E/360 ISDA

30 days a month, with leap years of 366 days.

Actual/360

Actual day count of the period, assuming the year has 360 days.

Actual/Actual

Actual day count of the period on the actual day count of the year.

Actual/365

Actual day count of the period, assuming the year has 365 days.

 

 

What's Next
Related Documentation
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